Investments

Cliintel Capital Aggressive Growth Fund IV

Investment Thesis:

We have invested in various major functions of the industry to create a first of its kind vertically conglomerate of symbiotic cannabis companies that are licensed legally through the fund with the Marijuana Enforcement Division of Colorado. This is the first time in the United States that this type of license has been issued, allowing our outside investors to own equity in licensed businesses while remaining passive unlicensed investors.

This structure allows us to offer investors a globally unique opportunity to invest in a diversified, professionally- managed venture capital fund without having direct licensing exposure to the cannabis industry. Further, federal legislative climate creates an asymmetrical risk to return profile with potential for multipliers

We work to exploit those rifts in legislation and the burgeoning billion dollar industry in the US and abroad. We currently are running operations in CA, NV, CO, AZ, WA, MI, and OR. We are poised to control a large portion of the distribution of Cannabis in North America.

Portfolio:

5156 Systems – Equipment and Real Estate Leasing

ESCAPE– Provides packaging, hardware, terpenes to all CLEAR licensees across 8 states

CARTA – Carta is a Private Equity and Venture Capital owner management system employed by some of the top firms in the country. CARTA allows our investors to see their portfolio in real time at any time.

Company Continues its Efforts to Re-Enter Cannabis Space

IRVINE, CA—[January 8, 2019]—Cannapharmarx, Inc. (OTC Pink Sheets: “CPMD”) announced today it has completed the acquisition of Alternative Medical Solutions, Inc., (“AMS”), an Ontario, Canada corporation. Under the terms of the agreement Hanover CPMD Acquisition Corp. (“HCAC”), a wholly-owned subsidiary of the Company, acquired all of the issued and outstanding securities of AMS for total consideration of CAD$12,710,000 consisting of cash, common stock, and a promissory note.

AMS is a late stage marijuana licensed producer applicant in Canada currently operating in the Pre-License Inspection and Licensing phase, which is Stage 5 of 6, with a fully approved license. Upon final construction of the AMS cultivation facility, Health Canada will inspect the facility and relevant operating procedures to ensure it meets the standards which have been approved in the application. Upon completion of the licensing stage, AMS should receive approval from Health Canada to begin cultivation of marijuana.

The purpose-built AMS property, acquired by the Company in this acquisition, includes 48,750 square feet of cultivation infrastructure contained within 6.7 acres of land in Hanover, Ontario Canada.

The facility’s exterior is complete. However, construction of the modern interior has not yet commenced. The finished production facility will include twenty individual state of the art grow rooms that are expected to maintain an annual production capacity of 9,500 kilos of marijuana. Completion of the build out of the facility is expected to take an estimated 20 weeks. Together with the remaining equipment needed to complete this expansion management estimates the Company will require approximately CAD$12.2 million in additional financing. The Company currently does not have a firm commitment for this financing but is optimistic that it will be able to raise these funds.

The completed acquisition of AMS affords Cannapharmarx, Inc. a licensed producer platform to enter the robust on-trend global marijuana segment. In October 2018, Canada became the first G7 nation to legalize the recreational use of marijuana. The Company anticipates proactively seeking additional business opportunities with other companies operating in the legal cannabis sector in Canada and such other jurisdictions where the same has been deemed legal.

About Cannapharmarx, Inc

The Company was originally incorporated in the State of Colorado in August 1998. In April 2010, the Company reincorporated. In October 2014, we changed our legal name to “CannaPharmaRx, Inc.” At that time we became an early-stage pharmaceutical company whose purpose was to advance cannabinoid research and discovery using proprietary formulation and drug delivery technology then under development. In April 2016, we ceased operations. Until the acquisition of AMS discussed above, we were dormant.